Most companies not using mature SCP tools

published: cw 27, 2006 in Supply Chain Software

An AMR Research study shows that supply chain planning (SCP) tools have matured over the past 20 years, while organizations using those tools still tend to be new at deploying the technology.

AMR research SCP forecast

Adoption of SCP tools varies by industry, with retail showing the greatest adoption. Use of SCP technology is also significantly greater at companies with $1 billion or more in annual revenue. Use of SCP runs nearly 50 percent greater at larger companies click to enlarge - Supply chain organization characteristics (see chart).

AMR research SCP forecast

Surprisingly, more than 50 percent of manufacturers have less than two years experience using SCP. AMR notes this figure is consistent with inquires the firm receives from manufacturers who know little about SCP. The study also reveals that companies using sophisticated SCP tend to use best-of-breed vendors or build internal custom systems rather than trying to use ERP or other applications to run SCP efforts.

Source: AMR Research